33 GHCL promoters relieved from charges by Sebi

Market regulator Securities and Exchange Board of India (Sebi) today relieved 33 promoters of chemical and textile company GHCL, who were charged with false reporting of their shareholding pattern in the company.

"Having considered the facts and circumstances and the submissions made by the promoter entities, I am of the view that the restraint order in respect of the said 33 promoter entities need not continue. The issues are left open, as a detailed investigation in the matter is on going," Sebi said in an order today.

Sebi said the company has been reporting false shareholding details of its promoters in its quarterly filing with the stock exchanges.

The promoter entities had submitted to the regulator that they had no role to play in the reporting of the shareholding done by GHCL to the stock exchanges and "that they were not even aware of the shareholding disclosures made by GHCL to the stock exchanges", Sebi said.

It was further submitted that there was no variation between their shareholding as disclosed to the stock exchanges under Clause 35 of the Listing Agreement by GHCL and their shareholding as recorded in the Register of Members maintained by the share transfer agent & registrar of GHCL.

Sebi, in its investigations had observed that the disclosures made by GHCL with respect to its promoters holding, across the four quarters of the year 2008, were at significant variance with the actual holdings.